Mercedes-Benz India expects electric vehicles to account for 20-25% of its sales next year if supply ramps up, as strong demand for its battery electric models continues to outpace vehicle availability. The luxury carmaker says its EV penetration could already have been 7-8% higher this year had it been able to secure adequate supplies.
Managing Director and CEO Santosh Iyer said supply, not demand, remains the key constraint for Mercedes-Benz’s EV business, with more than 1,000 confirmed orders pending for the new CLA BEV and customers also waiting for the locally produced EQS SUV.
“If you want to quantify that, we have mentioned close to 1,000 orders for the CLA, and EQS customers are waiting for their cars as we speak,” Iyer told Autocar Professional. “Clearly, if these cars were available, even in the last quarter or now, we should be able to deliver all of these cars.”
“That itself, 1,000 cars on a volume of 15,000, if I now look at it from a ratio perspective, is easily 7 to 8% more in terms of penetration that we could have achieved compared to what we could ideally do right now,” he added.
Mercedes-Benz India’s battery electric vehicle portfolio grew 16% year-on-year during January-September 2026, despite supply constraints. The company has received more than 1,000 confirmed orders for the CLA BEV, with deliveries currently extending to March 2027.
Iyer said the current order backlog gives the company confidence that EV penetration can rise sharply as availability improves. “I’m not sure if you’re able to measure losing sales. There are some cancellations for sure, but I think customers are still ready to wait for six months,” he said.
The supply constraints vary across Mercedes-Benz’s electric portfolio. Iyer said the CLA BEV is seeing exceptionally strong global demand, limiting the allocation that India can secure. In the case of the locally produced EQS SUV, the company underestimated the shift in customer demand towards the electric model and is now increasing production.
Mercedes-Benz expects EQS SUV availability to improve significantly from around November-December, while Iyer said most supply-related issues across its electric portfolio should be addressed by early next year.
The company is also preparing to launch the GLC BEV in India on November 4, further expanding its electric vehicle line-up.
The push to increase EV volumes comes as Mercedes-Benz India records its strongest sales performance yet. The company retailed 15,190 vehicles during January-September 2026, up around 8% from 14,132 units in the year-ago period. Q3 sales stood at a record 5,422 units, up 6% year-on-year and 17% sequentially.
Mercedes-Benz’s broader portfolio also recorded growth during the first nine months of the year. Top-End Luxury sales increased 13%, while the Mercedes-AMG portfolio grew 18%. Its Entry Luxury segment, which includes the GLA and CLA BEV, grew 4% and accounted for around 15% of overall sales.